Franchise FAQ

how to franchise a shell gas station

by Mr. Monserrat Langworth Published 2 years ago Updated 1 year ago
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How to apply for a Shell franchise?

How big is a Shell station?

What are the benefits of Shell?

What is the role of Shell in a Dodo dealership?

What is a CODO gas station?

How old do you have to be to own a shell in the Philippines?

How long does it take for a gas station to pay back?

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How much is a Shell gas station franchise worth?

Its brand is well-known, and many drivers seek out Shell gas stations. Because of this, the typical costs of a Shell franchise are high. The initial investment is typically between $2.5 million and $6.6 million. The annual franchise fee is $30,000, and you must maintain $700,000 in liquid capital.

Is it worth owning a gas station?

Gas stations are a great business to franchise because the demand for fuel in America is constant and not going anywhere. Our country literally runs on gas. People need to drive to work and trucks need to carry goods across country. Gas stations are a $250 billion a year industry.

Is franchising a gas station profitable?

Gas stations and their corresponding convenience store or food outlets rank as one of the most popular and profitable franchises in the United States. With over $400 billion in revenue every year, and more than 100,000 gas station/convenience stores operating all over the country it is clearly a popular business model.

Does Shell have franchise?

Shell offers a Company Owned Dealer Operated or CODO business model where dealer's role is to operate the gas station franchise and process all necessary orders. You can now start owning a Shell franchise in just 6 steps! Kickstart your dream franchise business with Shell Gas Station franchise!

Is running a gas station hard?

Whether it's your first time flexing your entrepreneurial skills or you're a seasoned (but always learning) pro, running a gas station is no easy task. But with the right know-how, operating a gas station ranks as one of the most profitable ventures in the country, according to Entrepreneur.

What do gas stations make the most money on?

Station owners make most of their profits in their stores, on sales of food and drinks, as well as alcohol where sales are legal. “The idea is to have a very competitive gas price, and when they go in the store, you can make money off that transaction,” Lenard said.

Do gas stations make a lot of money?

Gas retailers receive a fraction of the price listed on the sign–their net profit per gallon is around $0.03-$0.07–after factoring in costs like labor, utilities, insurance, and credit card transaction fees. This puts the net profit margin of a gas station at less than two percent.

What franchise is the most profitable?

Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•

How much does it cost to own a gas station?

A local petrol station business set up costs range in the region of R15 million and R100 million depending on the size and site. Further to this the operation payable to the oil company ranges between R2. 5 million and R15 million, depending on the cost to develop, projected volumes and profitability.

What are the requirements for gasoline station?

Checklist of. Requirements for. Gasoline Station. ... Affidavit of ownership & non-encumbrance of machin- ... Consumer Welfare and Promotion Office. Ground Floor, Annex Building. ... Application Fee. Certificate of Completion of. ... DBP processing fee. Bio-data of Applicant/Major. ... Two (2) copies of lot plan cer- tified by a Geodetic Engineer.

How much is a 7 11 franchise?

- Initial Store Supplies (Php 170,000.00), Initial Merchandise (Php 800,000.00), Construction Cost (approximately 2.03 Million Pesos), Advance Rent and Deposit (Depending on the lease terms) are settled before opening the store - Total Cash Outlay will range from 3.5 Million Pesos to 5 Million Pesos.

How much does it cost to franchise a Phoenix gas station?

We have 2 types of franchises: Company-Owned, Dealer-Operated (CODO) – starting at Php 3.5 million. Dealer-Owned, Dealer-Operated (DODO) – starting at Php 5 million.

How much does it cost to own a gas station?

A local petrol station business set up costs range in the region of R15 million and R100 million depending on the size and site. Further to this the operation payable to the oil company ranges between R2. 5 million and R15 million, depending on the cost to develop, projected volumes and profitability.

Do gas stations make money on gas?

Retailers Make Very Little Selling Gas Generally, the markup (or “margin”) on a gallon of gas is about 15 cents per gallon (gross profit before expenses). Factoring in expenses, which include rent, utilities, freight, labor and credit card fees, a retailer is left with about 2 cents per gallon in profit.

Is owning a convenience store profitable?

Generally, convenience stores are profitable propositions, with average gross profit margins upwards of $450,000. Profitable ventures may result in an opportunity to open other locations within a city or area, increasing your potential profits that much more.

How much does it cost to open a gas station in USA?

The initial costs of opening a gas station ranges on average from $250k to $2 million even for a small gas station. Also, unless you have access to large stockpiles of motor grade gasoline, you must enter into an agreement with a gasoline supplier.

How to Start a Shell Gasoline Station in the Philippines

Gasoline is one of the most important commodities in the world. It is used to transport goods and services all over the planet and therefore, dictates the prices of most products, from food to clothing to even medicines.

Top Gas Station Franchises in the Philippines » Pinoy Money Talk

James Ryan Jonas teaches business strategy, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.1 Billion ($56 Million) worth of retirement funds on behalf of thousands of UP employees.

What is Shell's mission?

Shell is committed to the empowerment of Historically Disadvantaged South Africans and in this regard, we have formulated a recruitment process and a business support programme designed to accelerate the development of these entrepreneurs.

What is Shell South Africa's commitment to transform its business?

Shell South Africa’s commitment to transform its business to reflect a retailer profile that represents the demographics of our country remains an imperative priority for us.

How long has Shell been in South Africa?

Shell has been active in South Africa for over 114 years and has played an important role in the country, not only as a premier oil company, but also as a committed corporate citizen and change agent.

What are the core values of Shell?

Our core values of Honesty, Integrity and Respect for people form the basis of the Shell General Business Principles. We believe in the fundamental importance of trust, openness, teamwork, professionalism and pride in what we do. We aim to have a Health, Security, Safety, the Environment (HSSE) and Social Performance (SP) performance we can be proud of, to earn the confidence of customers, shareholders and society at large, to be a good neighbour and to contribute to sustainable development.

What is retail training?

Our Retailer Training Programme ensures that candidates are equipped with the necessary skills to successfully operate a service station. A further tailored support programme is available for retailers under the Transformation profile who will receive 5 years of business mentoring and coaching.

How to apply?

To *become a Shell Retailer Click “Apply Now” and follow the directions on your screen to complete the application. It will take approximately 30 minutes to complete the form! Good Luck!

How to find a Shell gas station?

Find a Shell gas station that is available in an area in which you wish to operate a business. Do this by looking in the newspaper and online for gas stations that are for sale. You can also contact a business broker or a Realtor.

Is it wise to buy a Shell gas station?

Even when the economy is at its worst, buying a Shell gas station can still be a wise investment. Gasoline is almost recession proof and people will always need to buy it. If the gas station that you are considering buying offers other products and services in addition to gas, that is a definite plus for you, the buyer. Look into the best options for you, which could be either a straight sale or buying a franchise, in this lucrative business venture.

Inside retail opportunities

Bring more power to your retail business by becoming a Shell Retailer.

Operating multiple company owned sites

Bring more power to your retail business by becoming a Shell Retailer.

How to apply for a Shell franchise?

Interested to be a franchisee / dealer / retailer of a Shell gas station? Download the application form from Pilipinas Shell website and email it to [email protected] together with your Full Name, Email Address, Contact numbers, and Proposed location of the gas station.

How big is a Shell station?

Shell prefers these types of dealers to already own a commercial lot, with size of at least 600-1000 sqm and with 30-50 sqm frontage, which will be the location of the station.

What are the benefits of Shell?

Pilipinas Shell’s franchises, also called dealerships, may either be: (1) company-owned or (2) dealer-owned. Whether you’ll choose to operate a company-owned or dealer-owned gas station, the Shell dealership includes the following benefits: 1 Use of Shell brand and other trademarks 2 Location and market study 3 Layout and fitting out of service station 4 Building and equipment 5 Operating standards 6 Training for retailer and staff 7 Procurement programs 8 Pre-opening assistance 9 Grand opening assistance 10 Marketing strategies 11 Research and development 12 Business counseling

What is the role of Shell in a Dodo dealership?

The primary role of Shell in a DODO dealership is to provide the supply of products to be sold in the station and to enhance branding. Just like in CODO, Shell will help the dealer grow the business through Shell-initiated marketing support programs.

What is a CODO gas station?

This type of dealership, specifically called Company Owned Dealer Operated or CODO, is built and equipped by Shell. If you are to franchise this type of gas station, your role will be to operate, keep fuels well stocked, and grow the dealership with the support and programs offered by Shell.

How old do you have to be to own a shell in the Philippines?

The Shell dealership in the Philippines may be awarded to a person or an individual note more than 55 years old. The legal entity could be a Sole Proprietorship named after the dealership applicant or, if a corporation, the nominated principal should be owning at least 50.1% of the company.

How long does it take for a gas station to pay back?

According to Shell, the expected Return on Investment (ROI) for each dealership is around 20-30%. The average payback period for a gas station is around 2-3 years.

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